WH Smith is sometimes cited as one of those companies you wouldn't invent if it didn't already exist.

But chief executive Kate Swann is widely perceived to have done a good job on a business - retailing books, newspapers, magazines and stationery - which seems in structural decline.

And the company has received a boost with an upbeat note from analysts at Espirito Santo following a tour of the White City store in West London on Friday, accompanied by a number of executives including finance director Robert Moorhead. In a buy note with a 620p price target, Espirito Santo said:

The trading environment remains difficult and some of WH Smith's core categories such as books and news/magazines face significant challenges. However, we came away from the tour reassured that this is a management team with a deep understanding of the challenges it faces and a relentless focus on the 'science of retail.' By this we mean that what became increasingly apparent to us as we toured the store (in a way that a strategy presentation just can‟t do) was that WH Smith's success to date has been driven by an attention to detail by product category that we have rarely seen in UK retail.

WH Smith is reallocating space to confectionery and drinks to drive growth. Unsurprisingly, news is not a category where management is assuming volume growth, albeit promotional activity has led to a resilient performance in value terms. A key support to this category has been 'bookazines,' in depth, specialist subject periodicals ranging from 'Cupcake heaven' to 'ipad for beginners.'

What struck us here was that the margin on bookazines could be as much as twice that of a normal magazine. This is because bookazines come through WH Smith's own supply chain as opposed to the third party supply chain used for magazines. In addition, WH Smith develops the ideas for bookazines in its own office and then commissions publishers. The product is exclusive to WH Smith. Deals have been struck such that WH Smith only pays for the product once it has been sold.

Elsewhere, the company's market share is relatively low in greetings cards, and it has various plans to boost growth. It is growing sales online through Funkypigeon.com, and is also trialling stand-alone stores for the brand and has two shops-within-shops in its high street stores.

As for books, it has focused on children's books and non-fiction, while its partnership with Kobo on e-readers is expected to increase sales from non-traditional WH Smith customers.

Meanwhile in his latest retail comments, analyst Nick Bubb compared various stores on a weekend trip to Kingston in soutwest London. He said:

Most depressing shop in Kingston? Well, the crowded aisles and towering gondolas in WH Smith don't exactly gladden the heart, but at least the shop is lively, which is not what you can say about the bleak and cavernous Argos store.

In a declining market, WH Smith shares are currently 3p higher at 521p, while Argos-owner Home Retail is down 4.75p at 76.5p.